China edges closer to national pension system with ‘balancing’ of main retirement fund as population ages
- National balancing was started on January 1 for the corporate employees pension fund to ‘allow shortfalls to be compensated by surpluses nationwide’
- The government has been working to link the various provincial pension plans into a national one, so that money from richer areas can be used to support poorer areas
China has taken another step toward setting up a national pension system, beginning the “balancing” of its main retirement fund to help regions with older populations continue to make payouts.
National balancing was started on January 1 for the corporate employees pension fund to “allow shortfalls to be compensated by surpluses nationwide,” deputy finance minister Yu Weiping said on Tuesday.
An adjustment fund for the corporate employees’ pension fund was set up in 2018 to allow the central government to redistribute some money to address those shortfalls, and this new policy aims to take that further.
The central adjustment fund moderately balanced the pension fund burden between provinces. It was the first step toward national balancing
“The central adjustment fund moderately balanced the pension fund burden between provinces. It was the first step toward national balancing,” Qi Tao, an official with the Ministry of Human Resources and Social Security, added on Tuesday.
